Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1887-12-16

| chase of bonds has been already
made for the current year, 30 that
there is no outlet in that direction
In the present state of legislation the
only pretense of any existing Execu-
tive power to restore, at this time,
any part of our surplus reveues to the
people by its expenditure, consists in
the supposition that the Secretary of
the Treasury may enter the market
and purchase the bonds of the Gov
ernment not yet due at rate of pre-
MUM to be agreed upon. The oaly
provision from which such power
could be derived is found in an appro-
priation bill passed number of years
ago; aud it is subj ct to the suspicion
that it was intended as temporary
and limited to its application. instead
of comforting a continuing discre-
tion authority No condition ought
to exist which would justify the
grant of power to single official, up
on whose judgment of its necessity,
to withhold from or release to the
business of the people, in an unusual
manner, money held in the Treasury,
and thus affect, at his will, the finan-
cial situation of the country; end if
it is deemed wise to lodge in the Sec
tary of the Treasury the authority in
the present juncture to purchase
bonds. it should be plainly vested and
provided as tar as possible. with such
checks and limitations as will define
this officials right and discretion, and
at the same time relieve from undue
responsibility.
PURCHASING OF BONDS.
In considering the question of pur-
chasing bonds as means OF restoring
to circulation the surplus money ac'
cumulating in the Treasury, il should
be borne in mind that premiums
must, of course, be paid upon such
purchase, that there may be large
part of these bonds held as invest
ments which cannot be purchased at
any period, and that combinations
among holders who are willing to
sell may unreasonably enhance the
cost of such bonds to the Government
1t has been suggested that the pres
ent bonded debt might be refunded at
less rate of interest, and the difference
between the old and new security paid
in cash, thus finding use for the sur
plus in the Treasury. The success
of this plan, it is apparent, must de-
pend upon the volition of the holders
of the present bonds; and it is not en-.
tirely certain that the 'inducement
hich must be offered them would re-
suit in more financial benefit to the
Government than the purchase Of
bonds, while the latter proposition
would reduce the principal of the
of debt by actual payment, instead of
extending it.:
The proposition to deposit the
money held by the Government in
banks throughout the country, for
use by the people, is, it seems to me,
exceedingly Objectionable in princi-
pie, as establishing too close a rela-
tionship between the operations of
the Government Treasury and the
business of the country, and too ex.
pensivea commingling of their money,
thus fostering an unnatural reliance
in private business upon public funds.
If this scheme should be adopted it
should only be done as temporary
expedient to meet an urgent necessi-
ty. Legislative and executive effort
should generally be in the opposite
direction and should have a tendency
to Divorce, as much and as fast as can
safely be done, the Treasury Depart
ment from private enterprise.
Of course it is not expected that
necessary and extravagant appro-
ations will be made for the purpose
of avoiding the accumulation of an
excess of revenue Such expendi-
ture, beside the decentralization Of all
just conceptions of public duty which
it entails, stimulates habit of reckless
improvidence not in the least consist.
ent with the mission of our people or
the high and benefcent purposes of
our Government.
l have deemed it my duty to thus
bring to the knowledge of my coun-
trvmen, as we'll as to the attention Of
their representatives charged with the
responsibility of legislative relief, the
gravity of our financial situation.
The failure of the Congress hereto
fore to provide against the dangers
which it was quite evident the very
nature of the difficulty must necessari-
IL produce, caused a condition of fnan-
cial distress and apprehension since
your last adjournment which taxed to
the utmost all the authority and ex-
pedients within Executive control;
and these appear now to be exhausted.
If disaster results from the continued
inaction of Congress, the responsible.
ity must rest where it belongs
Though the situation thus far con-
sidered is fraught with danger which
should be fully realized. and though
it presents features of wrong to the
people as we'll as peril to the country,
it is but result growing out of a
perfectly palpable and apparant cause
constantly reproducing the same
alarming circumstances--a congested
National Treasury and a depleted
monetary condition in the business of
the country. 1t need hardly be stat
ed that, while the present situation
demands remedy, we can only be
saved from like predicament in the
future by the removal of its cause.
INEQuITABLE TARIFF LAWS.
Our scheme of taxation, by means
of which this needless surplus is ia
ken from the people and put into
the public treasury, consists
of a tariff or duty levied upon
importations from abroad, and inter-
nal.revenue taxes levied upon the
consumption of tobacco and spiritu-
Gus and malt liquors. 1t must be
conceded that none of the things sub
jected to interval-revenue taxation
are, strictly speaking, necessaries;
there appears to be no just complaint
of this tayotiop hu tho ooncuuarc of